Last December, Novatech acquired its largest Canadian competitor, Toronto-based Sunview Patio Doors. This addition of 220 employees makes the company the leading manufacturer of patio doors in the country.
Posted at 3:00 p.m.
Sunview will now be known as Novatech Patio Doors Ontario. Adding this acquisition to those made in recent years, brings the number of Novatech employees to 1,400, whereas it was still 680 just four years ago.
The Quebec manufacturer, whose head office is located in Sainte-Julie and which celebrates its 40th anniversary this year, now has a dozen facilities in Canada, three in the United States and one in France.
“In addition to acquisitions, our growth strategy involves the development of new products, explains Harold Savard, CEO. We do a lot of innovation. I would say that 20% of our sales come from products that did not exist four years ago. Our current strategy is also to increase our sales outside Quebec. There is still room to grow in Canada and the United States. »
Supply challenge
The company has four main product families: decorative doorglass, steel panels for the manufacture of doors, patio doors and glass for the manufacture of windows or showers.
Obviously, the current effervescence of the real estate and renovation market is a good time for the company. However, its business has been disrupted by supply chain turmoil, as is the case for many in the manufacturing sector right now.
PHOTO MARTIN CHAMBERLAND, ARCHIVES LA PRESSE
Harold Savard, CEO of Novatech
The vast majority of our materials come from Canada and the United States. Despite this, it is a big challenge to get what we need, and there have been huge price increases in steel and timber.
Harold Savard, CEO of Novatech
“We were affected, among other things, by a big cold snap in Texas in 2020,” he adds. This caused the closure of a chemical plant producing a component needed for polyurethane which is used to insulate doors. There has been a scarcity in polyurethane. »
To adjust to these circumstances, the company tries to keep larger stocks. In addition, having several factories allows them to help each other.
An investment
As with everything else, these factors have still resulted in some price hike for the consumer. But unlike products whose life is short-lived, doors and windows are an investment, believes the CEO of Novatech, which once again ranks among Deloitte’s best-managed companies.
“If you install a beautiful door in your home, you enhance its value,” he says. It is not a product that will have to be changed after a few months. It lasts a long time and creates value in a building. »
The key to their success
“Novatech has a very strong culture of innovation, continuous improvement and resilience. The COVID-19 crisis has caused turbulence, but we have always been used to reacting to change,” said Harold Savard, CEO of the company.